CGN Power has agreed to acquire two nuclear power plants and an engineering unit from its parent company, China General Nuclear Power, for $1.5bn.
China’s nuclear power operator will acquire 61 per cent equity interest in Fangchenggang nuclear power station in the Guangxi Zhuang Autonomous Region.
The Fangchenggang project will have a combined generation capacity of 6 GW on completion.
CGN Power will also acquire 100 per cent interest in the 2.5 GW Lufeng Nuclear and 100 per cent interest in CGN Engineering, a project construction management firm.
The Lufeng is a 2.5 GW nuclear power plant which is undergoing preparatory work in Lufeng, Guangdong province, upon securing government approval, reported South China Morning Post.
CGN Power said in a filing with the Hong Kong Stock Exchange that it operates as the sole nuclear power generator within the parent’s group of companies. It also has the right to acquire any assets from its parent that have the potential to be in competition with its businesses.
By 2020, China intends to nearly double its installed nuclear power capacity to 58 GW in order to reduce reliance on coal, Bloomberg reported.
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